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Overview
When Pay Out Unused Vacation Balance on Termination is enabled, ZonePayroll automatically pays out an employee's outstanding vacation dollar balance on their final pay. Because the payout is triggered directly by the termination date, no manual vacation balance adjustment is required.
This functionality applies to Canadian (CA) payroll and operates per pay period: the automatic payout occurs on the open pay run that contains the employee's official termination date.
📋 Prerequisite: Enable the Setting
This configuration setting must be enabled in Payroll Configuration before any termination is processed in the system:
In Global Search, search for Payroll Config and open the record.
Scroll to the bottom of the page to the Custom Options section.
Select the CA tab.
Check the box for Pay Out Unused Vacation Balance on Termination.
Click Save.
Terminating the Employee
The system payout is driven strictly by the Termination Date entered on the Employee Record:
Within Open Pay Run: If the termination date falls within the date range of the active/open pay run, the system automatically calculates and pays out any remaining unused vacation dollar balance.
Outside Open Pay Run: A termination date outside the active pay run will not trigger on that run; the payout will execute on whichever pay run eventually encompasses that termination date.
Step 1: Verify Balance Before Opening the Pay Run
Review the employee's current balance beforehand to confirm the expected payout amount prior to final processing:
Open the Employee Record.
Navigate to the Leave Info subtab.
Review the Vacation Balance field.
📌 Note: Note this figure; it is the starting point for the payout calculation below.
Warning: Always confirm the vacation balance on the employee's profile before opening the pay run. The Vacation Balance is a dollar accrual (an amount in dollars, not hours or days), so the payout will be a dollar amount.
Step 2: How the Final Payout is Calculated
The final vacation payout calculated on the payslip includes the existing balance plus current earnings accruals, adjusted for any time taken: